Key Takeaways

  • Q1 earnings per share reached $1.60, surpassing the analyst forecast of $1.58
  • Total revenue came in at $21.45 billion, falling short of the $21.76 billion estimate
  • Net interest income climbed 5% from the prior year to $12.1 billion
  • Trading revenue jumped 19% to $2.17 billion amid heightened market volatility
  • Shares declined roughly 1.7% in premarket hours after the earnings release

Wells Fargo delivered a mixed first-quarter performance that left investors wanting more. While the bank exceeded profit expectations, a shortfall in total revenue triggered a premarket selloff.

The bank reported adjusted earnings per share of $1.60, edging past the Street consensus of $1.58 by two cents. Total revenue reached $21.45 billion, marking a 6% gain from the previous year, though it trailed the $21.76 billion target set by Wall Street analysts.

Quarterly net profit totaled $5.25 billion, up from $4.89 billion during the corresponding period last year. On a per-share basis, this represented $1.60 compared to $1.39 in the year-ago quarter — a 15% jump.


WFC Stock Card
Wells Fargo & Company, WFC

Net interest income expanded 5% year-over-year to reach $12.1 billion. Noninterest income advanced 8% to $9.35 billion.

Average loan balances grew 10% to $996 billion. Average deposits increased 6% to $1.42 trillion. The bank’s return on equity metric improved to 12.2%, up from 11.5% in the same quarter last year.

CEO Charlie Scharf highlighted the bank’s fundamental momentum. “We saw continued positive impacts from the investments we have been making,” he stated, referencing the 15% increase in diluted EPS and loan expansion of 11%.

Wells Fargo distributed $4 billion to shareholders via common stock buybacks during the three-month period.

Volatile Markets Boost Trading Activity

Market turbulence sparked by geopolitical developments and interest rate speculation delivered a windfall for the bank’s trading operations. Markets revenue soared 19% to $2.17 billion during the first quarter.

The escalating U.S.–Israeli confrontation with Iran that erupted in March raised concerns about potential oil supply disruptions and stagflation risks. These developments prompted investors to adjust their holdings, creating elevated trading volumes throughout the financial sector.

Scharf addressed the uncertain environment, noting the bank continues to observe “continued resiliency in the underlying economy,” while adding that the effects of elevated oil prices might require additional time to materialize.

Workforce and Asset Quality Metrics

Wells Fargo reported a workforce of 200,999 employees at the close of March, down from 205,198 at year-end. The bank has recorded sequential headcount reductions in every quarter since late 2020.

Asset quality metrics remained stable. Net loan charge-offs held at 0.45% of average loans, matching the Q1 2025 level. The provision for credit losses increased 22% to $1.14 billion, driven by expansion in commercial lending and auto loan portfolios.

The Common Equity Tier 1 capital ratio registered 10.3%, compared with 11.1% in the prior-year period.

Shares of WFC traded down approximately 1.7% in premarket activity on Tuesday. The stock had already declined roughly 7% year-to-date before the quarterly results were announced.